Remove Waste with LEAN Making CRPs & nonprofits more effective Craig Cochran
Introduction • Polly Wessel
To be discussed during the presentation.
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What is LEAN? • Producing what is needed, • When it is needed, • With the minimum amount of materials, equipment, labor, and space
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IT’S ALL ABOUT SPEED!
Mouse busting through maze goes here!!! Too big of file.
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Common Misconceptions about Lean • It’s a factory thing • It won’t work here • We tried that • It’s all about one-piece flow • 5-S is cleaning up your desk • We’re different • Zero inventory • Lean is only Kaizen or Kanban • Doesn’t work for new products • Customers and Suppliers are
not “LEAN”. Why us? Demand Chain Solutions
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Lean Enterprise Principles 1. 2. 3. 4. 5.
Specify value in the eyes of the customer. Identify the value stream and eliminate waste. Make value flow at the pull of the customer. Involve and Empower employees. Continuously improve in pursuit of perfection.
A Value added activity is: Important to the customer. Transforms information or material. DONE RIGHT THE FIRST TIME. 6
Company name removed to product the Guilty
WOW! 7
Lean Production‌ is a philosophy which shortens the time line between the customer order and the product delivery (good or service) by identifying and eliminating waste. Business as Usual
Customer Order
Product delivery
Waste Time
Lean Manufacturing
Customer Order
Waste
Time (Shorter)
Product delivery
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Where is the REAL opportunity?
Typical non-value to value-added ratio: 99% NVA
1% VA
Most companies go after this: and maybe get this.
Best chance for improvement involves dealing with the waste inherent in the very process
Demand Chain Solutions
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8 Types of Wastes
Overproduction Defects - Rework or Scrap Inventory Waiting of parts/people/machines/paperwork Transportation of parts, people, paper Extra Processing beyond requirements Motion of people, machines Unused employee ideas
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A Culture of Teamwork
“The corporation simply cannot afford to deprive itself of the intelligence, imagination, and initiative of 90% of the people who work for it, that is, the workers."
Peter Drucker, Concept of the Corporation, 1946
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Lean Leadership • A New View of Managing “My job is to help you succeed.”
• Lead From the Front “We’re in this together.”
• Involve the Employees “What would make your job easier and better?”
• Provide Training and Resources “What do you need? How can I help?” 12
A Look Back ‌ The Origins of What We Now Call Lean
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Where Did Lean Come From? • Frederick Taylor • Henry Ford’s Model T factories • Developed by Toyota from late 1940s • Adopted in North America in 1980s • 1990: Machine That Changed the World coins the term “Lean”
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Henry Ford and The Model T High Volume with Low Variety • Continuous Flow • Elimination of Waste • Standardized Work
Highland Park, Michigan 1st Moving Assembly Line - 1913
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1950’s Japan: Toyota Motor Co. • A return to the lessons of Henry Ford • Training Within Industry • The Supermarket applied to the factory • Quality lessons of Deming and Juran • Taiichi Ohno leads the way
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The Evolution of Lean Machine That Changed the World (Lean!)
World War II and Training Within Industry Henry Ford
1910s
Toyota
1940s
1950s
Japan Study Tours Healthcare, Government, Military
Japanese plants in USA
1980s
100+ years of discovery (and re-discovery)
1990
2000s
The Major Elements of Lean
What Does a Lean Organization Look Like?
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VA vs. NVA Value Added Activities (VA) • Activities that transform materials into the finished product • Customer willing to pay for
Non-Value Added Activities (NVA) • Customer is NOT willing to pay for • Need to eliminate or minimize
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Common Lean Tools •
Workplace Organization (5S)
•
Visual Controls
•
Mistake-Proofing
•
Pull Systems – Respond to Demand
•
Value Stream Mapping
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5S - Workplace Organization 5 Steps to a Cleaner, Safer, More Organized Workplace
1. Sort 2. Set in Order 3. Shine 4. Standardize 5. Sustain
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A Place for Everything
What non-standard conditions do you see? 22
Home Address Labels
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Visual Controls
Any device or symbol that effectively places information at the point of use with few words or none at all.
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What do these buttons do?
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Visual Controls In the aerospace industry, it’s critical that mechanics know where all their tools are to avoid foreign object damage.
FOD
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Make the Standard Condition Obvious
What is the standard?
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Quality at the Source
Three rules of defective work: – Do not accept it – Do not create it – Do not pass it on
Employees must have the tools and the authority to make this happen. 28
Mistake-Proofing / Poka-yoke
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Mistake-Proofing Example
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Advantages of a Pull System • Production controlled by actual demand • Limited inventory of each item • Easy to see and respond to changes in demand • Managed at the point of use
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Everyday Pull System What triggers replenishment? How do we know what to replace?
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Copy Paper Replenishment
Triangle shows reorder point and procedure 33
Value Stream Mapping
A visual representation showing all the material and information flows in a process. • Follow the path of the product or service • Gain a common understanding of the process • Where are the opportunities? • What tools and resources are needed? The best map in the world is wasted unless it leads to action. 34
Current State Example - Invoicing
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How Do We Get There? •
Specify value by specific product
• Identify the value stream for each product • Make value flow without interruptions • Let the customer pull value from the producer • Pursue perfection Source: Lean Thinking, Womack & Jones, 1996
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It Starts at the Top • Commit to Lean • Lead From the Front • Involve the Employees • Provide Training and Resources • Establish a Culture of Continuous Improvement
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It’s All About People
“Manpower is something that is beyond measurement. There is no limit to what can be accomplished when everyone begins to think.”
- Taiichi Ohno 38
Don’t miss this Course! “Attaining Customer Loyalty” September 13-14, 2011 Las Vegas, NV • Fun, interactive, and practical • Offered at NO COST to NISH affiliate organizations • Register: https://www.nishacademy.org • Or contact Cora Chaply at: 571-226-4534
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For more information:
Craig Cochran Business Coach
678-699-1690 craig.cochran@innovate.gatech.edu
Smart and practical books:
www.patonprofessional.com 41
Juan Bezanilla Engineering Manager ReadyOne Industries jbezanilla@readyone.org
KAIZEN EVENT NWDS - Navy Woman Dress Shirt
ReadyOne Industries September 2008 Engineering Department
TEAM MEMBERS
Leader:
Consultant: Juan Reyes (Engineer)
Juan Bezanilla
Flor Loeza (Supervisor)
Facilitator:
Gerardo Ulloa (Operator)
Héctor Hernández
Rosa Armendáriz (Utility)
Visitors:
(Mfg. Mgr.) Members:
(Mfg Engr.)
Marina Hernández (Final Auditor)
Maria
Marcelo Lujan (Maintenance)
Art
Elena Jimenez (QC Mgr) Macias (Project Mgr)
Definition:
Kaizen is a daily activity, the purpose of which goes beyond simple productivity improvement. It is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work (“muri"), and teaches people how to perform experiments on their work using the scientific method and how to learn to spot and eliminate waste in business processes.
Purpose: KAIZEN EVENT is a structured procedure for identifying and eliminating all the waste as possible. Translation: The original kanji characters for this word are: 改 善 In Japanese this is pronounced "kaizen". 改 ("kai") means "change" or "the action to correct“ 善 ("zen") means "good"
Our Product Navy Woman Dress Shirt
Flow Chart
Shirt, Woman’s Dress Blue (Long Sleeve)
Layout Before
Navy Woman Dress Shirt Spaghetti Chart
Capacity = 50 Machines. Area = 4,002 Sq. Ft. (29’x138’) Walking Distance = 1,056 Ft. Lead Time = 19 hours. W.I.P. = 399 parts. People = 13 Op. + 1 Mtrl. Handle
250
200
50
AVERAGE = 62 sec.
150 146 113
100
33 50 45 56 52
8 21 49 57
28 40 27 18 40 33 13 35 36 48 36 23 122
31 119 139
70 92
25 41 46
Operation Number
NORMAL TIME (seconds) 42 14 44 28 21 37 27 23
C
350
Q
72 10 72 0 10 72 2 10 4 72 10 72 6 10 72 8 11 2 72 12 72 0 12 72 2 12 4 72 12 72 6 12 72 8 17 2 72 17 72 4 17 72 6 17 8 72 18 72 0 18 72 2 18 4 72 13 72 4 13 72 6 14 0 72 14 72 4 15 72 2 15 4 72 15 7 72 16 72 0 16 4 72 16 72 6 19 72 0 19 2 72 19 72 4 19 72 6 13 0 72 22 72 4 19 72 8 20 0 72 20 72 2 20 72 4 20 6 72 20 72 8 21 72 0 21 2 72 21 72 4 2 72 2 2 22 0 72 -A 22 72 0-B 22 0C
TIME (seconds)
Time Study Chart * Before * N.W.D.S. Time Study per Operation NORMAL TIME (seconds)
500
450
400
321
300
236
107 134 131
91 74 31
0
Production Scene = Before =
Navy Woman Dress Shirt’s Pictures Before Kaizen Event
Production Scene * Before *
Navy Woman Dress Shirt’s Pictures Before Kaizen Event
Production Scene * Before *
Navy Woman Dress Shirt’s Pictures Before Kaizen Event
Fixing the Scene
Fixing the Scene
KAIZEN EVENT start working
Improves
Performing the New Layout
Layout After Navy Woman Dress Shirt Spaghetti Chart
Capacity = 31 Machines Area = 1,720 Sq. Ft. (50’x38-15’x12’) Walking Distance = 366 Ft. Lead Time = 1 hour W.I.P. = 30 parts People = 9 Op. + 1 Material Handle
Time Study Chart * After * N.W.D.S. Time Study per Operator NWDS Loading, After KAIZEN 500
AVERAGE
450
= 325 sec.
365
350
328
350
342
321
300
285
300
324
309
250 200 150 100 50
WORKING TIME (By Operator)
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Vi lla
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Ta o Ar tu r
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Va
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0
An
TIME (seconds)
400
Production Scene * After *
Navy Woman Dress Shirt’s Pictures After Kaizen Event
Production Scene * After *
Navy Woman Dress Shirt’s Pictures After Kaizen Event
Summary Navy Woman Dress Shirt Objectives
Save
Before
After
Quantity of Machines
38 %
50
31
Area (Sq. Ft.)
57 %
4,002
1,720
Walking Distance (Ft.)
65.3 %
1,056
366
Lead Time (Hrs.)
94.7 %
19
1
91 %
399
36
ReadyOne Associates
35.7 %
14
9
Labor ( $$/ Day )
29.28 %
733.60
514.80
Production Rate
- 40 %
60
36
W.I.P. (units)
Requirements TAKT TIME CALCULATION Units Required by December 19th. Production Required: Production Done:
Available Time per Day: ( 8 Hrs X 3600 seconds)
3,744 -1,774
8 28,800 -1,200 -2,400
1,970
25,200 Available seconds per Shift
Available days from October 1st to December 19th October: 25 November: 15 December: 15
55
Daily Production Calculation: ( 1,970 / 55 )
Takt Time:
seconds per Unit.
(25,200 / 36) The Loading according to Takt Time: needs:
36
704
Hours per Shift seconds per Shift ( - Break of 20 minutes) ( 5 minutes / hour / restrictions)
4.2
Operators.
Due to Ratio 75 / 25 we have to increase the Operators Numbers to:
9
( 2 Non-Disabled & 7 Disabled)
* Due to individual restrictions of the personnel
Save & Cost SAVING CALCULATION BEFORE KAIZEN EVENT Operators: Hrs / day: Worked Hrs: Labor Rate: Labor Cost: Labor Save:
14 8 112 6.55 $733.60
AFTER KAIZEN EVENT
IDEAL (LEAN)
9 8 72 7.15 $514.80 $218.80 daily A: $12,034.00 project
B:
Cost of Working with Ratio 75 - 25
5 8 40 7.15 $286.00 $447.60 daily $24,618.00 project
B - A:
EFFICIENCY CALCULATION BEFORE KAIZEN EVENT SAH's: 0.7116 Units / Day: 60 Worked Hrs: 112 Efficiency: 38.12%
AFTER KAIZEN EVENT
A:
WHAT TO DO: A - B - C
IDEAL (LEAN)
0.7116 36 72
0.7116 36 33.6
35.58%
76.24%
B: Increase the Qty of the parts. 0.7116 60 72
@ 4.2 op B:
with 9 op
59.30%
NOTE: Finished project during 33 days (November 12, 2008)
COST FOR 1% OF EFFICIENCY Cost of Working with ratio 75 - 25: $12,584.00 Cost of the Efficiency with Ratio 75 - 25: 64.42% (100% - Actual%) $195.34
$228.80 daily $12,584.00 project
C: Decrease Operators
@ 5 op C:
0.7116 36 40
64.04%
NOTE: With 100% Disabled
Kent A. Walters Goodwill Industries of Southeastern WI, Inc. Executive Director, Goodwill Great Lakes Kent.walters@goodwillsew.com Joseph J. Nikolaus Director, Black Belt Goodwill Industries of Southeastern WI, Inc. joseph.nikolaus@goodwillsew.com
Discussion & Questions Remove Waste with Lean
Juan Bezanilla Engineering Manager ReadyOne Industries El Paso, TX jbezanilla@readyone.org
Session Evaluation Information
SESSION TITLE: Tools2 SESSION CODE: Q-T1045